Nanophase Technologies Reports Record Financial Results for Third Quarter Ended September 30, 2021
• Announces Another Record Quarter with 80% YOY Growth
• Delivered $22 Million in Nine-Month Revenue
• Solésence Nine-Month 2021 Revenue Exceeded Full Year 2020 Revenue by More Than 98%
Romeoville, Ill., Nov. 3, 2021 – Nanophase Technologies Corporation (OTCQB: NANX), a leader in minerals-based and scientifically-driven health care solutions across beauty and life science categories — with innovations that protect skin from environmental aggressors and aid in medical diagnostics — today announced financial results for its third quarter and nine months ended September 30, 2021.
“Through executing our growth strategy, we have seen accelerated consumer adoption of our Solésence products, as well as returning demand for our Active Pharmaceutical Ingredients (“APIs”) sold in to sun- and skin-care applications. We are continuing to develop new technologies and create exciting product applications for our novel beauty science platforms,” said Jess Jankowski, Chief Executive Officer. “Solésence beauty science sees triple-digit growth as our products continue to be embraced by our brand partners, and we expect this growth to continue through 2022. Through our largest personal care ingredients customer, we have seen growth in sales of our APIs eclipse full year 2020 levels through October 2021, and we expect to see continued growth in 2022. Demand for our medical diagnostics materials has softened after the first half of 2021, which we believe relates to the moderation in the current pandemic environment. We continue to believe that our novel materials technology enables enhanced performance in helping diagnosticians to identify COVID-19 and other viruses more accurately. Life science will remain the third major component of our business strategy going forward,” Jankowski added:
“After delivering more than $22M in revenue during the first nine months, we still had purchase orders in hand for another $27M+ taking us well in to 2022. Approximately $10M of this applies to 2021 customer orders, the majority of which we expect to fulfill prior to 2022.”
“Our results reflect our strong position relative to two dominant trends in the beauty industry: the rapid evolution toward clean and more inclusive products and the desire to simplify beauty regimes. The clean evolution builds on the premise that safer products will lead to more beautiful and healthy skin and a healthier planet, while the Pandemic-driven trend of simplifying beauty regimens has highlighted the need for technologies that can be multifunctional — offering a single formula with a combination of benefits that are commonly achieved by two or three separate products. Our technologies. and the products we build from them in both our API and Solésence businesses, serve as the core to brands successfully addressing the consumer’s needs driven by both these trends. As a result, our company will enjoy more than a dozen new product launches in 2022, underpinning Nanophase’s ability to continue solid growth in the future,” said Kevin Cureton, Chief Operating Officer.
Third Quarter and YTD 2021 Financial Highlights (All Numbers are Approximate)
· Revenue for the third quarter was $7.9 million, vs. $3.9 million for the same period in 2020. Revenue for the nine months ended September 30, 2021 was $22.1 million, vs. $12.3 million for the same period in 2020.
For the nine-month period of 2021:
· Solésence beauty science nine-month revenue was $13.4 million, up 204% from $4.4 million for the same period in 2020.
o Solésence nine-month 2021 revenue exceeded full year 2021Solésence revenue by more than 98%.
· Advanced Materials revenue was $3.4 million, down 8% from $3.7 million in the same period of 2020.
· Personal Care Ingredients revenue was $5.3 million, up 28% from $4.2 million in 2020.
· Income from operations, before interest expense and other income, was $2.9 million for the nine-month period in 2021, versus $1.2 million for the same period in 2020.
· Net income for the nine-month period ended September 30, 2021 was $2.7 million in 2021, compared to $0.8 million for the same period in 2020, reflecting a $0.04 per share improvement period over period.
· The Company finished the quarter with approximately $1.4 million in cash.
Jankowski concluded: “Our largest current challenges involve expanding our business to meet existing and future demand. We are hard at work to facilitate and manage this expansion, with confidence that it will support continued, if not accelerated, growth. We remain steadfast in our vision to enhance people’s lives through better health — with science and innovation as our pathway to get there. We are committed to doing our part to improve public health by providing essential products for the health and safety of those we serve.”
Conference Call
Nanophase will host its Third quarter 2021 conference call on Thursday, November 4, 2021, at 10:00 a.m. CDT, 11:00 a.m. EDT to discuss its financial results and provide a business and financial update.
Click here to listen to the live webcast of the event, or dial in using the number(s) below:
U.S.: (877) 312-8776
International: (408) 774-4007
The conference ID is 6190086.
Please dial in to the conference call at least 5 minutes prior to the scheduled start of the call to avoid connection delays. If a participant will be listen-only, they are encouraged to listen via the webcast after the call.
The call may also be accessed through the company’s website, at www.nanophase.com, by clicking on Investor Relations, Investor News and the link in this Press Release.
FINANCIAL RESULTS AND NON-GAAP INFORMATION
Use of Non-GAAP Financial Information
Nanophase believes that the presentation of results excluding certain items, such as non-cash equity compensation charges, provides meaningful supplemental information to both management and investors, facilitating the evaluation of performance across reporting periods. The Company uses these non-GAAP measures for internal planning and reporting purposes. These non-GAAP measures are not in accordance with, or an alternative for, Generally Accepted Accounting Principles (“GAAP”) and may be different from non-GAAP measures used by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with GAAP.
About Nanophase Technologies
Nanophase Technologies Corporation (NANX), www.nanophase.com, is a leading innovator in minerals-based and scientifically driven health care solutions across beauty and life science categories, as well as other legacy advanced materials applications. Leveraging a platform of integrated, patented, and proprietary technologies, the Company creates products with unique performance, enhancing consumers health and well-being. We deliver commercial quantity and quality engineered materials both as ingredients and as part of fully formulated products in a variety of formats.
Forward-Looking Statements
This press release contains words such as “expects,”” shall,” “will,” “believes,” and similar expressions that are intended to identify forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements in this announcement are made based on the Company’s current beliefs, known events and circumstances at the time of publication, and as such, are subject in the future to unforeseen risks and uncertainties that could cause the Company’s results of operations, performance and achievements to differ materially from current expectations expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, without limitation, the following: a decision by a customer to cancel a purchase order or supply agreement in light of the Company’s dependence on a limited number of key customers; uncertain demand for, and acceptance of, the Company’s engineered materials, ingredients, and fully formulated products; the Company’s manufacturing capacity and product mix flexibility in light of customer demand; the Company’s limited marketing experience; changes in development and distribution relationships; the impact of competitive products and technologies; the Company’s dependence on patents and protection of proprietary information; the resolution of litigation in which the Company may become involved; the impact of any potential new government regulations that could be difficult to respond to or too costly to comply with while remaining financially viable; the ability of the Company to maintain an appropriate electronic trading venue; and other factors described in the Company’s Form 10-K filed March 26, 2021. In addition, the Company’s forward-looking statements could be affected by general industry and market conditions and growth rates. Except as required by federal securities laws, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new events, uncertainties or other contingencies.